AI (Artificial Intelligence) is a new transformative technology that has shown its potential during the recent years. As evidenced, the fast development of AI methods and data centricity in finance is providing opportunities, but it is also posing new challenges to our economies. In particular, we have seen an uplift in several areas of AI, but especially in language technology and LLMs (Large Language Models). These technologies could change our societies profoundly, and therefore well-planned and targeted policies are key to develop a safe and sustainable society with the AI.
This year’s Systemic Risk Analytics conference has a strong focus on AI and systemic risk. The aim of the conference is to adopt methods and techniques from other disciplines, such as computer science, engineering, biology and physics, that use computer-intensive approaches, novel data sources, and of course AI. Examples of possible topics include how LLMs can be used to detect systemic risk, and whether AI and quantum computing can pose new sources of systemic risks, e.g. operational risks and cyber risks.
Beyond of this, the conference welcomes also submissions on more traditional tools of systemic risk analytics and macroprudential policy, such as early-warning indicators, network and contagion analysis, macro stress-testing, tools for big data analytics.
The conference includes several keynotes, presentations and poster sessions. Extended abstracts are welcome as well. Topics for panel discussions are especially welcome this year.
Topics
The themes of the conference cover policy and practitioner-oriented research related to systemic risk measurement. We solicit contributions covering a broad range of techniques related to systemic risk analytics, particularly related to (but not limited to) the following themes (new and themes with a special focus are in bold):
- Use of Large Language Models (LLM) and trustworthy AI
- Cyber security and operational risks as sources of systemic risk
- AI and Quantum Computing as potential source of new systemic risks
- Use of AI with big data for systemic risk analytics
- Risks and opportunities stemming from disruptive innovations in financial technology (FinTech)
- Using systemic risk analytics to support macro-prudential policy and regulation
- Analysing emerging risks from interconnectedness of the financial system
- Identifying risks from market-based finance
- Evidence of macroprudential policy measures
- Economic policies in the turbulent and uncertain times
Format, timing and venue
The conference will be held in a hybrid format, allowing virtual participation. The conference will take place on 6-7 June 2024 at Bank of Finland in Helsinki. The conference includes keynotes, presentations and poster sessions. The conference is accompanied with a social event for speakers on 6 June, taking place at the Bank of Finland Villa.
Registration instructions
Conference participation requires pre-registration and is free of charge. However, participants are expected to pay their expenses for travel and accommodation. Registration to the event will open later in the spring. More information will can be requested at fs.events@bof.fi.
Registration open here: https://www.lyyti.in/sra-2024-participants
Programme (please note that all times listed in the conference schedule are in Finnish local time (UTC+3 EEST).
Conference Day 1, Thursday 6 June 2024
8:30-9:00 Registration & coffee
9:00-9:15 Conference opening: Marja Nykänen (Deputy Governor, Bank of Finland)
9:15-10:00 Keynote: ‘AI and systemic risks’: Jon Danielsson (LSE), moderated by Kaj-Mikael Björk (Centre for Intelligent Computing and RiskLab at Arcada)
10:00-10:15 Refreshments
10:15-11:15 Session 1, Bank distress, chaired by Esa Jokivuolle (Bank of Finland)
Predicting bank distress in Europe: Despo Malikkidou (European Banking Authority) and Wolfgang Strohbach (European Banking Authority)
The Long and Short of U.S. Bank Regulations: From the Great Depression to the 2023 Bank Failures: Osama Khawar (University of Florida)
11:15-12:15 Session 2, Banking vulnerabilities, chaired by Esa Jokivuolle (Bank of Finland)
The not-so-hidden risks of bank runs and fire-sales with `hidden-to-maturity' accounting: Grzegorz Halaj (European Central Bank)
Non-stationary Financial Risk Factors and Macroeconomic Vulnerability for the UK: Tibor Szendrei (The National Institute of Economic and Social Research)
12:15-13:15 Lunch
13:15-14:15 Talk: ‘The role of data and AI in shaping the economy’: Bengt Holmström (MIT emeritus) and Peter Sarlin (Silo AI), moderated by Tuomas Peltonen (European Systemic Risk Board)
14:15-14:30 Coffee
14:30-15:00 Presentation: ‘Artificial intelligence in EU securities markets: outlook and risks’: Giulio Bagattini (ESMA), chaired by Kaj-Mikael Björk (Centre for Intelligent Computing and RiskLab at Arcada)
15:00-16:30 Session 3, Decentralised Finance, chaired by Tatu Räsänen (Bank of Finland)
Truth by Consensus: Gabriele Camera (Economic science institute, Chapman university)
Financial and Informational Integration Through Oracle Networks: Daniel Rabetti (National University of Singapore)
DeFi leverage: Wenqian Huang (BIS)
16:30-16:45 Closing remarks
Conference Day 2, Friday 7 June 2024
8:30-8:45 Registration & coffee
8:45-9:45 Keynotes: Quantum computing and emerging risks, moderated by Kaj-Mikael Björk (Centre for Intelligent Computing and RiskLab at Arcada)
Cybersecurity hot topics in 2025 and beyond: Petri Puhakainen (VTT, Technical Research Centre of Finland Ltd)
Quantum Computing - Navigating risks of new computing era by envisioning alternative futures: Arto Wallin (VTT, Technical Research Centre of Finland Ltd)
Quantum resilient cybersecurity: Visa Vallivaara (VTT, Technical Research Centre of Finland Ltd)
9:45-10:45 Session 4, AI and communication, chaired by Elisa Newby (Bank of Finland)
From Transcripts to Insights: Uncovering Corporate Risks Using Generative AI: Maximilian Muhn (University of Chicago, Chicago Booth)
Four Facts about International Central Bank Communication: Xin Zhang (Sveriges Riksbank)
10:45-11:00 Refreshments
11:00-11:45 Keynote: Olli Rehn (Governor, Bank of Finland)
11:45-12:45 Session 5, Economy, chaired by Markku Lehmus (Bank of Finland)
Economics-Informed Neural Networks for Macroeconomic Forecasting: Hui Chen (MIT)
Estimating the impact of supply chain network contagion on financial stability: Zlata Tabachová (Complexity Science Hub Vienna)
12:45-13:45 Session 6, Macroprudential policy, chaired by Samu Kurri (Financial Supervisory Authority)
Macroprudential Regulation: A Risk Management Approach: Sweder van Wijnbergen (De Nederlandsche Bank)
The Impact of Capital-Based Macroprudential Policy on Banks' Balance Sheet Composition: Marco Mandas (University of Cagliari)
13:45-14:00 Closing remarks
14:00 Light lunch
POSTER
Probability Overweighting or Underweighting? Evidence From Systemically Important Banks: Branka Matyska (Dutch Central Bank, Research Department)